The impending ban on credit card fees could cost agencies as much as £16,000 a year, one agency owner has warned.
The revised EU Payment Services Directive, which will prohibit retailers from charging for most consumer debit and credit cards, was a major concern of agents at a Travel Weekly round-table event at this month’s Advantage Conference in France.
Many believe agents and operators will have to absorb the charge levied by credit card firms – typically 1.5% – when the directive comes into force in January.
Tony Mann, owner of Idle Travel, estimated the changes could cost a single agency £16,000 a year.
“A lot of customers don’t bother with credit cards [because of the current fees],” he added. “But I think they will go back to credit once the charge is dropped.”
Agents shared tactics for recouping costs without adding a booking fee, which they agreed deterred customers, including adding more ancillaries into holiday packages or upping prices.
Carrick Travel director Tracey Carter said adding fast-track airport security clearance and lounge passes could help close sales but would eat into profits. She added: “We don’t want to just sell more ancillaries, we do that anyway.”
Simon Goddard, chief executive of Online Regional Travel Group, said: “We are an industry that’s low‑margin and high‑value, so we can’t just bury [the cost].”
Julia Lo Bue-Said, managing director of The Advantage Travel Partnership, said: “The cost is an added burden.” She said the consortium was working on initiatives to “soften the blow”.
Abta has issued guidance for members including information on charging booking fees.